Meta Description: Demystifying streaming royalties. Learn the difference between mechanical and performance royalties, and how Recods ensures you collect your full 85% royalty share monthly.

Understanding where your money comes from in the streaming economy is the first step toward building a sustainable music career. The world of streaming royalties is complex, involving two separate but equally important payments.

Here, we demystify the system and explain how Recods ensures you get paid your full share, fast and transparently.

The Two Pillars of Music Royalties

When a song is streamed on Spotify or Apple Music, two primary types of royalties are generated simultaneously:

1. The Sound Recording Royalty (The “Master” Right)

• What it covers: Payment for the specific master recording of the song. This is the largest portion of the streaming payment.
• Who collects it: Your music distributor (like Recods) or your record label collects this from the Digital Service Providers (DSPs).
• How you get paid: Recods collects the full amount and then pays you your share (85%) based on your plan.

2. The Publishing Royalty (The “Composition” Right)

• What it covers: Payment for the underlying musical work—the lyrics and melody. This is split into Mechanical Royalties (reproduction/distribution of the song) and Performance Royalties (public broadcast/stream).
• Who collects it: Collecting societies (like ASCAP, BMI, PRS) and a Publishing Administrator.
• Importance: This is how songwriters are compensated.

Recods’ Financial Advantage

While some distributors claim “100% royalties,” this can be misleading if they charge high fees for essential services or are slow to pay. Recods focuses on total financial efficiency:

Feature	Recods Advantage	Financial Impact
Royalty Split	You keep 85% of all Sound Recording Royalties.	A clear, generous share that allows us to invest in your free tools.
Payout Speed	Guaranteed Fast, Monthly Payouts.	Essential for artists to reinvest earnings quickly into marketing and production.
Transparency	Full visibility via your Advanced Analytics dashboard.	Know exactly which platforms and countries are generating your revenue.
Included Features	Free YouTube Content ID and Social Distribution.	Converts potentially lost revenue from user-generated content into reliable monthly income.

By choosing Recods, you consolidate your distribution and monetization efforts, ensuring both your Sound Recording Royalties and potential Neighboring Rights (optional) are captured efficiently, so you can focus on creating.